Korea’s 4 Major Insurances stand out distinctly from those of other countries, presenting numerous distinctive features. In this article, we aim to delve into the specifics of the Korean National Health Insurance within the 4 Major Insurances, highlighting its unique aspects.
I. Brief Introduction of Korean National Health Insurance for Employees
- Mandatory Enrollment and National Scope: Unlike many other countries, Korea mandates the enrollment of all employees in the Health Insurance system. This national-scale initiative is designed to ensure comprehensive coverage for the entire workforce.
- Equal Contribution by Employees and Employers: Korea adopts a balanced approach in funding Health Insurance. Both employees and employers contribute approximately 8% of the employee’s gross salary.
- Comprehensive Coverage and Preventive Healthcare Emphasis: Korea’s Health Insurance system offers broad coverage, spanning doctor consultations, hospitalization expenses, surgical procedures, diagnostic tests, and prescription medications. Moreover, there is a notable emphasis on preventive healthcare, with subsidies for routine health check-ups and screenings.
- Tailored Support for Senior Citizens: Elderly citizens aged 65 and above receive specialized support within the Health Insurance framework. This includes coverage for geriatric care, specialized treatments, and long-term care services, addressing the unique healthcare needs associated with aging.
II. Enrollment Procedure for Employees in the National Health Insurance
The process of enrolling in the National Health Insurance in Korea involves several key steps. Employees are required to initiate their health insurance coverage through their employers. The enrollment declaration is submitted through the employer, and the date of employment serves as the basis for the health insurance registration.
Upon submission, the company is obligated to report the employee’s monthly salary (total compensation declaration) to the National Health Insurance Services. The NHIS calculates the monthly health insurance premium by applying the health insurance rate (8%) to the reported monthly salary. The health insurance premium is then communicated to the company.
The employee’s portion of health insurance premium is deducted from the employee’s salary as a deduction item. The employer, in turn, is responsible for consolidating both the employee and employer contributions and remitting the total amount to the NHIS by the 10th of each month.
This systematic process ensures that employees are covered by the National Health Insurance, with both the employee and employer making equal contributions to sustain the comprehensive health coverage provided by the Korean healthcare system.